Malaysia’s Trade Records Steady Growth in October 2024

Stay connected with BizTech Community—follow us on Instagram and Facebook for the latest news and reviews delivered straight to you.

Malaysia’s trade sector showed sustained growth in October 2024, with total trade rising by 2.1% year-on-year (YoY) to RM244.3 billion, reflecting the resilience of the country’s economy amid global uncertainties.

Exports and Imports See Positive Growth

Exports climbed by 1.6% or RM2 billion YoY to RM128.1 billion, while imports increased by 2.6% to RM116.1 billion, according to Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin. However, the trade surplus contracted by 7.6% to RM12 billion, marking the 54th consecutive month of surplus since May 2020.

“The rise in exports is largely driven by domestic exports, which account for 77.6% of total exports,” noted Mohd Uzir. Domestic exports surged by 3.1% to RM99.4 billion, whereas re-exports declined by 3.5% to RM28.7 billion.

On a month-to-month basis, Malaysia recorded growth in total trade (+4.2%), exports (+3.7%), and imports (+4.8%) compared to September 2024, though the trade surplus narrowed by 6.2%.

Key Drivers of Export Growth

Exports saw robust contributions from several sectors, including:

• Electrical & electronic products: +RM3.8 billion
• Other manufactures: +RM991.1 million
• Palm oil and palm-based agriculture products: +RM785.3 million
• Rubber products: +RM610.8 million
• Processed food: +RM554.0 million
• Machinery, equipment & parts: +RM549.4 million

Imports Bolstered by Intermediate and Consumption Goods

Imports rose across several categories, with intermediate goods—essential for manufacturing processes—growing by 12.3% (RM6.8 billion) to RM62.6 billion (53.9% of total imports). Consumption goods increased by 3% (RM276.4 million) to RM9.6 billion, reflecting strong domestic demand.

Conversely, capital goods, which make up 10.6% of total imports, fell by 2.7% (RM344.2 million) to RM12.4 billion, highlighting a slight slowdown in long-term investment activities.

Key Trading Partners and Regions

Malaysia’s export gains were driven by increased trade with several key partners:

• United States: +RM4.6 billion
• Taiwan: +RM1.9 billion
• Singapore: +RM998.3 million
• India: +RM921.5 million
• Turkey: +RM757.7 million

On the import side, significant growth was recorded from:

• United States: +RM3.1 billion
• Taiwan: +RM2.1 billion
• Mexico: +RM1.1 billion

January-October 2024 Trade Snapshot

For the first 10 months of 2024, Malaysia’s trade increased by 9.3% to RM2.4 trillion, driven by export growth of 4.8% and import growth of 14.6%. However, the trade surplus for this period fell sharply by 46.3% to RM102.8 billion, reflecting rising import costs.

Economic Implications

The sustained growth in Malaysia’s trade underscores a positive economic trajectory, bolstered by resilient domestic demand, robust industrial output, and increasing global demand for key sectors like electronics and palm-based products.

Despite these gains, the narrowing trade surplus points to rising import dependency, particularly for intermediate goods, amid a global push for industrial growth.

Malaysia’s trade performance in October 2024 not only highlights its economic resilience but also signals the need for strategies to balance export growth and import dependency, ensuring long-term trade sustainability.